By paNOW Staff

Keep an eye on China

Nov 3, 2010 | 6:48 AM

What would it take for grain prices to become unhinged? I asked that question of a market analyst yesterday. Since I didn’t ask if he was willing to be quoted, the market analyst will remain anonymous, but his answer was interesting.

Back in 2008, grain prices increased dramatically. Spring wheat on the Minneapolis Exchange briefly hit an amazing $25 a bushel and canola hit $750 a tonne. We’ve seen another bull run in recent months fueled by the Russian export ban and corn supplies being much tighter than expected.

So what would it take for grain prices to repeat the 2008 excitement?

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